News: Smucker Plucks Carnation
J.M. Smucker Co. said yesterday its Smucker Foods of Canada Co. unit has acquired the Canadian Carnation brand canned milk products business from Nestle Canada for an undisclosed price.
The deal is expected to add about $50 million in annual net sales and boost profits slightly, Smucker said yesterday.
The company said the current line of Carnation branded milk products sold in Canada that were acquired includes evaporated milk, thick cream and skim milk powder with annual net sales of about $50 million.
In addition to the Carnation brand licence, the acquisition also includes a manufacturing plant in Sherbrooke, Que., with 29 employees.
The J.M. Smucker Company announced that the sale included the rights to use the Carnation brand for these products in Canada.
"The addition of the Carnation milk brand, with its long history and leading position, is an excellent fit with our strategy of owning and marketing leading North American food brands," commented Tim Smucker, chairman and co-chief executive officer. "We are again expanding our presence in Canada, adding to the strong portfolio of our Robin Hood, Crisco, Eagle Brand and Five Roses brands in the baking aisle."
In addition to the license for the Carnation brand in the evaporated, thick cream, and powdered milk category in Canada, the acquisition includes a manufacturing facility in Sherbrooke, Quebec, with 29 employees. For the remainder of fiscal 2008, the acquired business is expected to add approximately $30 million in net sales and be slightly accretive to earnings.
From the October 8, 2007, Prepared Foods e-Flash